Bulletin n. 1/2005
December 2005
CONTENTS
  • Section A) The theory and practise of the federal states and multi-level systems of government
  • Section B) Global governance and international organizations
  • Section C) Regional integration processes
  • Section D) Federalism as a political idea
    • Jehiel Philippe, Thisse Jacques-François
    How to win a decision in a confederation
    in Journal of Public Economics , Volume 89, Issue 7 ,  2005 ,  1191-1210
    This paper deals with collective decision making within a group of independent states. The right to choose the public policy is delegated from the central authority to one of the states through a bidding procedure among the group state members. We identify the following tradeoff: competition among states yields higher transfers to the central authority, but the outcome tends to be less efficient than what it is when states negotiate prior to the decision making process. We extend and illustrate the model by means of a public good game involving several heterogeneous states.
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